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What Is a ‘Contango’ Market in the Context of Futures Contracts?

A market where the futures price is higher than the current spot price, often due to positive 'cost of carry' (upward-sloping futures curve).
Greeks.Live07.11.25

What Is a ‘Contango’ Market in the Context of Futures Contracts?

A Contango market is one where the futures price of an asset is higher than the expected future spot price or the current spot price. This situation often occurs when the 'cost of carry' (storage, insurance, interest) is positive.

In Contango, the futures curve slopes upward, meaning contracts with longer expirations trade at higher prices.

What Is the Concept of ‘Contango’ and ‘Backwardation’ in Futures Pricing?
What Is the Difference between ‘Roll Yield’ and ‘Carry Cost’ in Futures?
What Is ‘Contango’ and ‘Backwardation’ in Futures Markets?
What Market Factors Typically Lead to a State of Contango?

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